Energy/Mining

U.S. government unveils latest version of fracking rules

Encana workers work a wellhead in Rifle. More than 1 million U.S. oil and gas wells have been fracked since the first experimental operation in 1947, according to the American Petroleum Institute. (Brennan Linsley, The Associated Press)

The government unveiled its latest version of hotly fought rules for fracking on federal land — 440 million acres nationwide, 20 million in Colorado — trying to protect mountains, forests and prairies from the downside of drilling.

The Obama administration's priority "is to continue to expand safe and responsible domestic energy production," Interior Secretary Sally Jewell said in a conference call Thursday afternoon. "We want to ensure the industry has clarity on the rules that are going to apply on all public lands. (These rules) will ensure that the environment is protected."

Environment groups immediately accused federal officials of caving to industry demands, calling the rules weak, and warning of gaps and loopholes they contend could jeopardize water supplies for cities.

"The rules protect industry, not people," said Natural Resources Defense Council president Frances Beinecke. "This draft is a blueprint for business-as-usual industrialization of our landscapes."

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Oil and gas industry leaders, meanwhile, complained that a new layer of federal regulations could hurt energy development and jobs.

"States have been successfully regulating fracking for decades," including fracking on federal lands, said Kathleen Sgamma, vice president of Western Energy Alliance. "While the current rule is better than the first impractical rule, (the Department of the Interior) still has not justified the rule from an economic or scientific point of view."

Colorado and several other states already regulate fracking, or hydraulic fracturing, the method of injecting up to 5 million gallons of water, along with sand and chemicals, to pry oil and gas out of deep shale formations.

Gov. John Hickenlooper recently testified in Congress against federal rules, saying states should call the shots.

Hickenlooper on Thursday was not available for comment, spokesman Eric Brown said. "We are reviewing the draft rules," he said.

U.S. Bureau of Land Management officials, who manage the federal mineral estate, said the rules would complement efforts by Colorado and other states, including Wyoming, North Dakota and Texas, to regulate fracking. The rules include a variance process for deferring to states and tribes when their standards meet or exceed federal standards.

"The BLM will work with states and tribes that already have rules in place so that we don't produce duplication and delays," Jewell said.

In Colorado, BLM officials said 1.5 million acres of public land currently are used for producing oil and gas and that 4.2 million acres have been leased for possible future drilling.

The Colorado Oil and Gas Conservation Commission issues permits for all wells in the state. BLM officials issue additional permits for drilling on federal land — roughly 10 to 15 percent of wells in Colorado.

About 13 percent of U.S. natural gas and 5 percent of oil comes from wells on public land.

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